TeraWulf shares soar after Anthropic leases data center in Kentucky
Anthropic has signed a 20-year lease for a 400 MW dedicated AI data center campus in Kentucky with TeraWulf. This deal addresses Anthropic's critical need for vast computing capacity to develop and run its powerful AI models, with the facility expected to come online in phases through 2028. The agreement is projected to bring in $19 billion for TeraWulf, a former crypto mining company pivoting to AI, resulting in a significant surge in its stock.
Anthropic has secured a significant 20-year lease agreement with TeraWulf for a dedicated AI campus in Kentucky. The deal provides Anthropic with access to approximately 400 megawatts (MW) of computing capacity, an amount equivalent to powering a medium-sized city.
The facility is slated to become operational in phases, starting in the middle of next year and reaching full capacity by 2028. This infrastructure deal is crucial for Anthropic, as access to massive computing power and specialized infrastructure has been a major constraint for the company and other players in the competitive AI landscape. The ability to secure such capacity is increasingly vital for developing and running powerful AI models.
TeraWulf, identified as one of several crypto mining companies transitioning to AI, benefits from existing campuses that allow it to service AI clients like Anthropic more rapidly than starting new developments. The lease is expected to generate about $19 billion for TeraWulf, contributing to an 80% stock increase for the year, with a double-digit rise on the day the deal was announced. The report also noted Anthropic's history of other compute deals with hyperscalers, including mentions of Coreweave and Broadcom.